Backblaze and PureNodal announce AI, HPC cloud collaboration

Published 02/04/2025, 14:18
Backblaze and PureNodal announce AI, HPC cloud collaboration

SAN MATEO, Calif. - Backblaze, Inc. (NASDAQ: BLZE), known for its cloud storage solutions and currently trading near its 52-week low of $4.71, has announced a partnership with PureNodal, a specialized cloud platform developer, to provide a combined offering aimed at enhancing artificial intelligence (AI) and high-performance computing (HPC) workloads for enterprise customers. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, despite facing recent market challenges with a 50% decline in share price over the past year. The collaboration is set to deliver a cost-effective and efficient alternative to traditional cloud services, focusing on ease of deployment and accelerated outcomes for AI model training, data analytics, and media rendering.

The partnership leverages PureNodal’s AI-optimized compute platform, which includes features such as cloud fabric, low-latency software-defined networking (SDN), and high-performance infrastructure, with Backblaze’s B2 Cloud Storage. This integration is designed to offer a scalable foundation for handling intensive AI and HPC workloads without the complexity and expenses associated with legacy cloud solutions. The company has demonstrated strong revenue growth of 25.1% over the last twelve months, with total revenue reaching $127.6 million. (InvestingPro subscribers can access detailed financial metrics and 7 additional ProTips about Backblaze’s growth potential.)

Jason Wakeam, Chief Revenue Officer at Backblaze, expressed enthusiasm about enabling PureNodal to embed Backblaze B2 Cloud Storage within their AI and HPC cloud platform, highlighting the potential for customers to more affordably build the future of AI. Russell Cozart, Chief Marketing & Product Officer of PureNodal, emphasized the partnership’s ability to meet the demands of next-generation workloads in terms of performance, flexibility, and scalability.

The new offering, dubbed PureNodal Object Storage, Powered By Backblaze, is now available as part of the PureNodal cloud platform. It is tailored to allow organizations to store and access large volumes of unstructured data with enterprise-grade performance and reliability, which is particularly beneficial for AI, HPC, and other data-heavy workloads.

Backblaze, headquartered in San Mateo, CA, has been offering cloud storage alternatives since 2007 and serves over 500,000 customers globally. PureNodal caters to enterprises and innovators requiring advanced cloud infrastructure for AI and HPC applications. The partnership aims to provide customers with better economics and a faster path to value, according to the companies’ statements. While the company maintains a moderate debt level with a debt-to-equity ratio of 0.6, four analysts have recently revised their earnings expectations upward for the upcoming period, suggesting potential optimism about this strategic move. Investors seeking comprehensive analysis can access the full Pro Research Report, available exclusively on InvestingPro, which provides detailed insights into Backblaze’s financial health and growth prospects.

This announcement is based on a press release statement and reflects the latest strategic move by Backblaze to expand its services in the cloud storage market.

In other recent news, Backblaze Inc. reported its fourth-quarter 2024 financial results, surpassing analyst expectations. The company recorded an earnings per share (EPS) of -0.06, beating the forecasted -0.09, and achieved a revenue of $33.8 million, slightly above the projected $33.64 million. This performance was largely driven by the B2 Cloud Storage segment, which experienced a 22% year-over-year increase, contributing $17.1 million to the quarter’s revenue. Additionally, Backblaze’s adjusted EBITDA more than doubled from the previous year, indicating improved operational efficiency.

Backblaze has also expanded its cloud services in Canada, establishing a new deployment at Cologix’s TOR3 data center in Toronto. This move aims to enhance the company’s ability to offer cloud services that comply with Canadian data sovereignty laws, addressing the growing demand for in-country data storage solutions. Furthermore, Backblaze aims for significant growth in the AI and cloud storage markets, projecting full-year 2025 revenue between $144 million and $146 million. The company anticipates B2 growth to exceed 30% by the fourth quarter of 2025.

In terms of future expectations, Backblaze plans to achieve an adjusted EBITDA margin above 20% by the end of 2025. The company is focused on becoming a "Rule of 40" company, delivering both growth and profitability. This strategic focus is supported by the company’s initiatives in AI data pipeline solutions and expanding its data center presence. Overall, these developments reflect Backblaze’s commitment to driving growth and operational improvements in the cloud storage market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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